Group Five's chairwoman, non-executives resign
JOHANNESBURG, June 25 (Reuters) - Group Five said
on Tuesday its chairwoman had resigned along with three
non-executive directors three-months after the South African
construction company filed for creditor protection.
Nonyameko Mandindi and non-executive directors Michael
Upton, Edward Williams and Cora Fernandez resigned with
immediate effect, the company said, without giving reasons for
Group Five, created in the 1970s from five construction
companies, has struggled to make money in an industry squeezed
by South Africa's weak economy and a pullback in infrastructure
spending by the government and private sector.
In March, the company was placed under "business rescue",
similar to U.S. Chapter 11 bankruptcy protection, after lenders
pulled funding following cash flow
Since then Group Five has said it would sell some assets and
has exited some non-performing projects. It is also cutting
Last Thursday, Group Five's so-called business rescue
practitioners said management accounts for the eight-months to
Feb.28, indicated that a further 1.8 billion rand of losses were
incurred following losses of 800 million rand in the year to
June 2017 and losses of 1.3 billion rand in the year to June
"Major losses and negative cash flows were forecast for the
balance of the 2019 calendar year," it had said in a statement.
The practitioners also said they were seeking the consent of
a majority of the creditors to extend the publication date of
the business rescue plan to Aug.30, from June 28 due to the
complexity of the business rescue proceedings.
(Reporting By Naledi Mashishi. Editing by Jane Merriman)
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